Seaview PlaceMakers investment for sale

Opportunities to secure large-scale industrial assets in Seaview are increasingly limited, with development land effectively exhausted and few sizeable holdings coming to market. For investors, that places added value on existing assets that combine substantial land area, modern improvements and long-term occupier demand within one of the Wellington region's most established industrial precincts.

Purpose-built industrial facility in Seaview

A purpose-built facility at 49 Seaview Road is for sale, comprising a substantial freehold industrial holding occupied by PlaceMakers for 10 years.

Modern trade retail and distribution space

The property occupies a 1.11-hectare Special Business-zoned site and comprises approximately 2,713sqm of modern trade retail and distribution space, completed by Wallace Developments in 2016, incorporating a showroom, high-stud drive-through warehouse, offices and staff amenities.

There is extensive customer parking to the front of the site and more than 4,000sqm of concrete yard space to the rear, supporting efficient trade operations and vehicle movements. The prominent Seaview Road position provides strong exposure within the suburb's main industrial corridor.

PlaceMakers anchors the industrial investment

The asset is fully-leased to Fletcher Distribution Limited, trading as PlaceMakers, New Zealand's largest supplier of building materials and one of the country's most recognisable trade retail occupiers.

Long-term lease could extend to 2049

The recently-renewed lease runs through to September 2031, with a further three rights of renewal of six years each, extending potential occupancy through to September 2049. Annual CPI-linked rent reviews provide built-in rental growth, with market reviews at renewal.

Annual net income of $742,623

The property returns annual net rental income of $742,623 plus GST, with operating expenses payable by the tenant under a full-net lease structure.

Seaview property offered for sale by tender

It is being marketed for sale by tender closing at 4pm on Wednesday 2 December through Fraser Press, Mark Sherlock, Ethan Hourigan of Bayleys Wellington Commercial, and Charlie Tudehope, Bayleys Auckland.

Press says opportunities to secure industrial assets of this scale and quality in Seaview rarely come to the market, with the offering combining a nationally-recognised tenant, built-in rental growth and a large-format facility that would be difficult to replicate in the region today.

"This is arguably the strongest industrial investment offering we've taken to the market in the Wellington region over the past five to seven years.

"Investors will immediately recognise the strength of the PlaceMakers covenant and the security provided by a long-term lease structure, but the enduring appeal of this property lies in the underlying real estate fundamentals.

"While the building was purpose-built for PlaceMakers, it remains sufficiently generic to accommodate a broad range of industrial, trade retail or distribution occupiers in the future.”

Limited industrial land supports long-term appeal

That flexibility is important, says Press, because opportunities to develop comparable facilities in Seaview are becoming increasingly constrained. There is no undeveloped industrial land of any notable size available, and the cost of delivering a building of this scale in today's market would be substantial.

"The improvements are modern, functional and highly adaptable. Combined with the significant yard area, strong site proportions and prominent position on Seaview Road, the asset has enduring relevance regardless of tenancy changes over time.

"Vacancy across the precinct remains low by historical standards and should the current occupier choose not to renew in the future, we would expect strong leasing interest from a wide range of potential tenants.

"Large-format facilities with extensive yard provision are not easily replicated in this market. When you combine that with annual CPI growth, a full-net lease and one of the country's strongest building industry tenants, the result is a compelling long-term investment proposition."